Selgros claims insolvency of Flamingo over 70,000 lei unpaid debt

Selgros Cash&Carry has filed a legal action against Flamingo International (BSE: FLA) regarding the initiation of insolvency proceedings over 70,000 lei outstanding debt, according to a press release to Bucharest Stock Exchange.

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“Between Flamingo and Selgros it has been a long-term collaboration, Flamingo acting as provider of electronics and IT products, and Selgros as beneficiary, by marketing acquired products from our company through its store chain”, reads the press release.

Selgros hasn’t initiated any procedure to clear existent debts between the two companies prior to the legal action.

The electronic, home appliance and IT products retailer reported 23.19 million lei loss (€5.5 million) in the first six months, 12-fold higher than a year earlier.

The main shareholder of Flamingo is Dragos Cinca with 25.2% stake. Dan Adamescu holds 17.54% through Nova Trade and Astra Asigurari, according to the latest reports.

As of September, Midfair Limited based in Cyprus, is the new shareholder of the company after the acquisition of 21.6% stake previously held by QVT fund.

The retailer has a market value of 22.6 million lei (€5.26 million), according to the yesterday’s closing quote of 0.029 lei/share.